CXC CSEC Principles of Accounts (POA) exam guide: Section 7: Control Systems
CXC CSEC Principles of Accounts Exam Guide
Section 7: CONTROL SYSTEMS
The students should be able to:
|1.||Explain the need for control systems;||The need for control systems.
|2.||Identify common control systems;||
Common control systems
(a) Suspense Account,
(b) Control Accounts,
(c) Bank Reconciliation Statements.
Distinguish between those errors which affect and those which do not affect the trial balance;
|Types of errors.|
Explain the need for suspense account;
|Uses of the suspense account.|
Prepare journal entries for the correction of errors;
|Correction of errors via journal entries.|
|6.||Construct a suspense account;||Suspense accounts.
|7.||Construct a statement of revised profit after the correction of errors;||The effect of errors on the Trading and Profit and Loss account and the Balance Sheet.|
Explain the purposes of control accounts and how they are prepared;
|Uses of control accounts.|
Identify the sources of information for entries made in control accounts;
|Source of information for entries in control accounts.|
|10.||Construct sales and purchases ledger control accounts;||
Sales Ledger Control Accounts,
Purchases Control Accounts.
Explain the significance of the balance on control accounts;
|Meaning (significance) of the balances on Control Accounts.|
Account for differences between cash book and bank statement balances;
|Identification of the items that cause the difference between cash book and Bank statement.|
|13.||Construct a bank reconciliation statement using the adjusted cash book balance||Uses and construction of the Bank Reconciliation Statement.|